Institutional Investors Adjust Positions Amid Market Volatility

According to ChainCatcher, a recent study by XWIN Research Japan reveals that institutional investors are actively adjusting their positions. On-chain data indicates a decrease in Bitcoin balances on major exchanges, while reserves of stablecoins like USDT and USDC are rising. This suggests that institutions are reducing risk exposure and accumulating stablecoins. The study highlights a pattern similar to the period from August to October 2025, where funding rates surged before the Federal Open Market Committee (FOMC) meetings and dropped sharply after announcements, coinciding with Bitcoin's price peaking and then declining. Currently, CME futures open interest is stagnant, and large holders' spot positions remain stable, further indicating that professional funds are preparing for market volatility. Analysts advise investors to avoid chasing pre-meeting rallies and instead focus on risk management, as market volatility typically increases significantly around FOMC meetings.